Premier African Minerals has announced the acquisition by Ethiopian Potash Corp (EPC) of Premier’s Togo and Mali subsidiaries has received final approval from the TSX.
This will see Premier holding 120 million new shares in EPC, representing approximately 42% of the issued and outstanding shares.
This is that further to its press releases of 22 April 2013, 24 May 2013, 4 June 2013 and 3 July 2013. Premier is an AIM quoted multi-commodity natural resource company with mineral projects located in Western and Southern Africa.
The shares, except as mentioned below, will be subject to a four month hold period and will be tradeable from 31 October 2013. Of these shares, 20 million shares (which relate to the sale of Premier’s Mali subsidiary) will be held in escrow pending TSX-V approval of technical and legal reports being satisfactorily submitted prior to 30 June 2014. If approval is not forthcoming the Mali subsidiary transaction will be unwound. As part of these transactions, Premier has appointed two representatives to EPC’s board, John (Ian) Stalker and David Weill as the Company is entitled to nominate two directors to the board of EPC while Premier’s shareholding remains above 30%.
Through the transactions Premier will gain exposure to EPC’s prospective Danakil potash property in Ethiopia, in which EPC will retain a 30% interest, with a free carry to Scoping Study and a total spend of C$10 million.
Circum Resources Ltd, the purchaser of 70% of this property, has raised the funds required to meet the carry referred to above and expects to rapidly advance exploration of the property. In addition, through the company’s shareholding in EPC, Premier will retain exposure to the Malian and Togo subsidiary assets, which includes the Taoudenni and Oglat potash projects in Mali, the Southern Togo phosphate/clays projects, and the Bassar phosphate project in Togo. All assets are further described in the Company’s Admission Document.
According to Premier CEO, George Roach: “This transaction has many benefits both for Premier and EPC. Through our substantial shareholding in EPC, Premier retains a significant interest in the prospective Togo industrial mineral and phosphate properties and Malian potash projects. Premier also acquires a significant interest in EPC’s Danakil potash property, gaining any potential upside from the exploration and development of these properties at no further exploration spend to the company. In conjunction, with positive developments at our RHA tungsten project in Zimbabwe, which we are advancing with a view to near-term production, we believe it should be an exciting second half for 2013 for Premier, and that we are well placed to deliver on our strategy of generating value from our diverse multi-commodity asset base in Togo and Zimbabwe.”